NOMURA RESIDENTIAL FUND
3240

11th Fiscal Period（Ended May 31, 2012)

Analyst Meeting Presentation Material

July 18, 2012

Contents
1. Highlights of the 11th Fis c al Period

・11th FP Financial Statement Overview
・11th FP Performance
・Effectiveness of 3rd Public Offerring

4. Details of the Financ ial Res ults
2
3
4

2. Fund M anagem ent Sum m ary

・Asset Management
・Replacement Strategies
・Management Strategies

18
19
20
21
22

6
7
8

3. Fund M anagem ent Res ults

・Changes in Asset Size
・Portfolio Occupancy Rate・Changes in Leased Units and Rent Level
・Changes in Revenue
・Asset Management Efforts
・Financial Status
・Appraisal Value Status

・Income statement
・Balance Sheet・Forecasts for the 12th Fiscal Period
・Unitholders
・Changes in Investment Unit Price and Cash Distribution

10
11
12
13
14
15
16

APPENDIX

・Current Status and Outlook of Rental Housing Market
・Selective Investment of "Core Units"
・Portfolio Status
・Portfolio Map
・Portfolio
・Changes in Financial Performance・Interest-bearing Debts
・Fund Profile
・Asset Management Company Overview

24
25
26
27
28-32
33
34
35
36

Highlights of the 11th Fiscal Period

111th Fiscal Period (ended May 31, 2012) Financial Statement Overview
Financial Statement Overview[Difference in Forecasts and Results]
10th Fiscal Period

11th Fiscal Period

Difference

11th FP Forecast(ended Nov. 30, 2011)(ended May 31, 2012)(previous period)(released Jan. 2012)

Difference to11th FP Results

Operating Revenues¥4,445 million¥5,250 million+ 18.1 %¥5,186 million+ 1.2 %

Operating Profits¥2,098 million¥2,507 million+ 19.5 %¥2,488 million+ 0.8 %Net Income¥1,477 million¥1,856 million+ 25.7 %¥1,814 million+ 2.4 %

¥11,770¥12,302+ 4.5 %

¥12,018 million+ 2.4 %

 Rental Revenues /Disposition Revenues
 Interest Expense, etc.

+ 0.9 %Cash Distribution Per Unit

Difference in Cash Distribution (10th Fiscal Period and 11th Fiscal Period)(yen/unit)

13,000[Difference in Forecasts and Results](released Jul. 2012)

Difference to11th FP Results¥5,182 million- 1.3 %

¥2,445 million- 2.5 %

¥1,856 million- 0.0 %

- ¥2,211¥12,300- 0.0 %

- ¥2,564

 Rental Revenues /No-Disposition Revenues
 Interest Expense, etc.
 Other- 0.7 %

12th FP Forecast- ¥417¥12,302+ ¥661

12,000+ 1.5 %

¥11,770+ ¥288・ Rental Revenues

・ Rental Revenues+ ¥157・ Other Rental Revenues

・ Other Rental Revenues+ ¥764

11,000・ Rental Expenses

・ Commission Fee , etc+ ¥4,624+¥812

・ Rental Expenses- ¥688・ Disposition Revenue- ¥ 55- ¥293・ Interest Expense &Loan-related Fee , etc- ¥124・ PO-related

10,00010th Fiscal Period
Cash Distribution

Current Portfolio

PO acquisition
8 properties

Other Expenses

11th Fiscal Period
Cash Distribution+ 2.5 %
- 1.8 %

2

11th Fiscal Period Performance
Acquisition

Finance ・ Capital Acquisition with Public Offering Refinancing approx. ¥34 billion

Asset Management Realizing high occupancy rates
in all investment areas
Total Portfolio
y

（％）

100
100

・ 8 Properties・¥15 billion

Greater Tokyo Area

Other Areas（

・ NOI Yield

7.6 %

40

¥34.7billion
35

98
96

Total Portfolio

96.0％

96.2％

97.0％

96.6％

96.7％

・ Building Age 4.2 years

30

96.2％

 Replacement Strategies

94

Average

96.5%

Disposition

92
90
Jan

Feb

Mar

Apr

15

( US Minami Urawa )May

Disposition Price：0¥292 million

5

NOI Yield：

00 4.2 %0

Building Age：

0.21.4 years

・ Average Occupancy Rate

¥4.7billion¥9.4billion¥9.7billion¥5.4billion¥5.0billion

11th
FP

12th
FP

13th
FP

14th
FP

15th
FP

16th
FP

17th
FP

18th
FP

19th
FP

20th
FP

21st
FP

・Lower interest costs
Acquisition(11th FP)

(10th FP)

96.5%

→

Greater Tokyo Area

96.2%

Other Areas

97.4%

Total Portfolio

1.03 ％

20

10

Dec

→

1.39 ％

25( US Koganei Honcho )96.5%( 0.0pt)

Acquisition Price：.¥725 million

→

96.1%

(- 0.1pt)

NOI Yield：006.1 %→

97.3%(- 0.1pt)

Building Age：

007.9 years

・Diversification of repayment date and・elongation/fixation of debt financing
・Investment Corporation Bond：5 years, ¥5 billion, 1.03%(Feb, 24. 2012)[Changes in Financial Performance][ Portfolio at Jul, 18. 2012]
 Improvement of Appraisal Price(10th FP)

Asset Size

(11th FP)

Total Portfolio ¥140.1 billion → ¥141.0 billion (+ 0.6%)

Maintain High Occupancy Rate ＋：

Portfolio NOI Yield ：Building Age：[11th FP]

[10th FP]

¥150.58 billion
00005.4 % *Weighted Average Interest Rate

1.47%

→

1.28% (-0.19pt)

LTV Level

53.0%

→

53.1% (+ 0.1pt)

00009.1 years

Enhance Quality Of Portfolio ＋ Maintain Financial Soundness

Stability and Growth of Cash Distribution
NOI Yield is calculated by excluding the annual NOI of US Minami Urawa (disposed during the 11th fiscal period) and including the estimated NOI of US* Portfolio
Koganei Hommachi to the 11th Fiscal Period End Portfolio NOI (total annual basis NOI of each property) and dividing it with the total asset amount as of today.

3Effectiveness of 3rd Public Offering
Overview ［PO acquisition 8 Properties］

Stability and Growth of Cash Distribution* Figures at time of acquisition or estimated at time of acquisition are stated・ Acquisition Price：¥15.09 billion

・ Appraisal Value：¥15.84 billion

・ Estimated NOI Yield ：6.8 %・ Building Age

4.2 years：

Stable Cash Distribution above the ¥12,000 mark(yen)

Public Offering with Enhanced Cash Distribution

12,500¥12,302¥12,300

11th FPMay 31, 2012

12th FP
Nov. 30, 2012

12,000¥11,770¥11,674

PF Fujimidai

PF Tsurumi II

PF Shin Osaka
11,50011,00010,50010,0009th FP
May 31, 2011

10th FP
Nov. 30, 2011

US Kumegawa

US Machiya South Court

Status of Management ［ PO Acquisition : 8 Properties ](%)

Occupancy Rate ［ 1,129 units ］
Higher Occupancy Rate

US Izumi

NOI Yield ［¥15.09 billion ]

8.0

98.5

US Sapporo Riverfront(%)

Higher NOI Yield

97.6%

7.6%

(+3.2 pt)(+0.8pt)

US Kita Sanjo Dori
7.5

97.0

7.0

95.5
Average of
8properties

Average of
8properties

94.4%

6.8%
6.5

94.0
Dec. 31, 2011

May 31, 2012
（11th FP）

Estimated

NOI

May 31, 2012
（11th FP）

4

Fund Management Summary5Asset Management [ Maintain High Occupancy Rate / Shorten Vacancy Period ] Maintain High Occupancy Rate
• Shorten Vacancy Period→ Control lease termination period

 Improve Leasing Conditions

 Attain Incidental Revenue and Curtail Costs• Implementation of
Increase Lease Rent

• Further attain incidental revenues
such as key money

Changes in Occupancy Rate and Vacancy Period
100.0%
95.9%
95.0%

Occupancy Rate

96.0%

96.5%

96.5%

93.5%

92.6%

Maintain High Occupancy Rate
90.0%
111 days

Vacancy Period

109 days(-2 days)

100
days
100日

Shorten Vacancy period

80 days(-29 days)

70
days
70日

71 days(-9 days)

68 days(-3 days)

52 days(-16 days)

40 days

40日

1,000units

1,000件

Leased units

0units559 units

1,119 units

775 units

1,124 units

747 units

1,309 units

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

0件(Note) Regarding the occupancy rate and vacancy period, average figures of each fiscal period is stated.

6

Replacement Strategies
Results of Replacement Strategy (After 8th FP)：

Acquisition
US Itabashi
Kuyakushomae

US Yoga

High Yield
Low Building Age

US Kasai East

US Kamimaezu US Tamatasukuri

Disposition：

US Tennocho

US Koganei Honcho
・ Acquisition Price：¥725 million

・ NOI Yield

：

6.1 %

・ Building Age：

7.9 years

・ Acquisition Date：

Jun. 8, 2012

*1 NOI Yield at time of acquisition is stated.
*2 Building Age at time of acquisition is stated.

Low Management Efficiency
High Building Age

PU Ebisu Minami

US Yono Hommachi

US Minami Urawa
・ Disposition Price ：¥292 million

・ Book Value：¥275 million

・ NOI Yield

：

4.2 %

・ Building Age：

21.4 years

・ Disposition Date：

Mar. 14, 2012

*3 Yield, based on the fiscal period NOI at time of disposition, is stated.
*4 Building Age at time of disposition is stated.

Results of Replacement Strategy (after 8th FP)
Acquisition
No. of Properties

6 Properties

Dispositin

4 Properties

External Growth
Incr ease Asset Si ze¥5.9 Billion¥1.8 Billion

Average NOI Yield

6.4 %

4.8 %

Enhance NOI Yield

Average Building Age

4.0 Years

14.9 Years

Improve Building Age

PropertyPrice

7

Management Strategies

Strategies

MarketAsset Management Strategy

Replacement Strategy

Financial & Capital Strategy

 Maintain stable High Occupancy Rate Decline in transaction yield Continued low interest environment

 Improvement in leasing conditions

 Decrease in prime properties

 Ease in lending attitude of financial
institutions

 Maintain High Occupancy Rate

 Continue Replacement Strategies

 Conservative Financial Strategies→ Shorten vacancy period→ Improve quality of portfolio Improve Lease Conditions

 Selective Investment in High
Revenue Properties→ Implementation of Increase lease
rent→ Fully utilize both established andnew networks→ Build strong relations with lenders
Diversify ways of funding Enhance Fund Recognition→ Active investor relations

 Attain Incidental Revenue andCurtail Costs

Strengthen Profitability

Increase Asset Size

Stable Financial Base

Stable Cash Distribution Above The ¥12,000 Mark8

Fund Management Results9Changes in Asset Size
Replacement (after 11th FP)

Stable Growth of Portfolio

Disposition ： US Minami Urawa

Acquisition ： US Koganei Honcho

・Disposition Price ：¥292 million

・Acquisition Price ：¥725 million

・Book Value：¥275 million

・Appraisal Value：¥752 million

・NOI Yield

：

4.2 %

・NOI Yield

：

6.1 %

・Building Age：

21.4 years

・Building Age： 0 7.9 years（billions of yen)

180
160
143properties
140
131properties
120¥110.33billion

100
80

89 properties¥67.03 billion

134properties¥115.93billion

139properties

139properties¥121.48billion¥121.48billion¥131.46billion

144properties¥133.41billion

143properties¥132.89billion

145properties¥135.04billion

152properties

153properties¥149.86billion¥150.58billion

PO acquisition
8 Properties

97properties

Leasable Units¥75.42billion

8,917 units

60
40
20
0

IPO
¥30,257milliom
1st FP End#1PO
12,514million
2nd FP End

3rd FP End#3PO
7,161million#2PO
8,029million
4th FP End

5th FP End

6th FP End

7th FP End

8th FP End

9th FP End

10th FP End

Greater Tokyo Area : 81.0%
Other Areas: 19.0%11th FP End

Current
Status
As of
Jul.
18,
2012
(May 31, 2007) (Nov. 30, 2007) (May 31, 2008) (Nov. 30, 2008) (May 31, 2009) (Nov. 30, 2009) (May 31, 2010) (Nov. 30, 2010) (May 31, 2011) (Nov. 30, 2011) (May 31, 2012) (Jul. 18, 2012)*The graph is based on the total acquisition price as of each fiscal period end (rounded down to the nearest 10 million).

Portfolio Overview (11th Fiscal Period End)
Acquisition Price¥149,862 million

Leasable Units

8,874 units

Average Rent Per Unit

approx. ¥94 thousand

Average Leasable Floor Area Per Unit approx. 29 sqm
10Portfolio Occupancy Rate
10th Fiscal Period

11th Fiscal Period

Average: 96.5%

Average: 96.5%

98.0%

97.2%

96.8%

96.0%

96.5%
96.2%

96.7%

96.7%

96.2%

96.8%

97.0%

96.6%

96.2%

97.4%

97.6% PO acquisition
8 Properties

96.2%

96.7%

Portfolio

96.0%
95.5%

94.0%

94.4%

92.0%

Tenant Turnover Season

90.0%
Area

…
Jun
2011

…
Jul

…
Aug

…
Sep

…
Oct

…
Nov

…
Dec

2012年…
Jan
2012

…
Feb

…
Mar

…
Apr

…
May

Portfolio

96.2%

96.5%

96.2%

96.7%

96.7%

96.8%

96.0%

96.2%

96.6%

97.0%

96.7%

96.2%

Greater Tokyo Area

95.9%

96.1%

95.9%

96.4%

96.5%

96.4%

96.1%

96.1%

96.4%

96.3%

96.0%

95.5%

Other Area

97.0%

97.5%

97.3%

97.4%

97.4%

97.8%

95.9%

96.3%

97.2%

98.4%

98.1%

97.7%

Leasable Floor Area

64,800 tsubo

65,871 tsubo

65,871 tsubo

65,871 tsubo

65,871 tsubo

66,589 tsubo

79,379 tsubo

79,379 tsubo

79,246 tsubo

79,036 tsubo

79,036 tsubo

79,036 tsubo

Maintain high Occupancy Rate ( 10th FP Average Occupancy Rate ： 96.5 % → 11th FP Average Occupancy Rate ： 96.5 % )PO acquisition 8 Properties( Occupancy Rate at Dec.31, 2011

： 94.4 % → Occupancy Rate at May 31, 2011

： 97.6 % )11Changes in Leased Units and Rent Level
Changes in Leased Units and Rent Per Tsubo Rent per tsubo

 Analysis of Change
Volatility

Total Portfolio- 3.4 %

11,039yen

Property
Replacement
Difference(+1,035 units)(units)

Note

9,000

→ 10,662yen[Details]

Cancellations New Lease(1,294 units) (1,309 units)

11th FP End(8,561 units)

8,000

Tenant TurnoverContinued Lease
New Properties- 0.2 %
±0.0 ％- 3.2 %

Newewal 1,309 units

10th FP End(7,511 units)

Renewal 1,829 units
PO acquisition 8 Properties(average 8,706yen/tsubo)*Existing Portfolio: [Previous FP] -0.5% → [This FP] -0.2%

Acquisition:1,067units
Disposition:00,32units

7,000

6,000
10th FP End Details of Lease Renewals

Renewals(7,252 units)

Property Replacement
Continued Lease
Increase/Decrease(includeds renew als)

Cancellations

New Lease11th FP End

Units

7,511

1,035

7,252

1,294

1,309

8,561

Rent Level(yen/tsubo)

11,0398,706

10,65910,783

10,665

10,662

 Details of New Lease

10th FP

11th FP

Difference

10th FP

11th FP

DifferenceContinued Lease

546 unit

1,829 unit

+ 1,283 unit

New Lease

747 unit

1,309 unit

+ 562 unit

Renewal Rate*

78.1 ％

81.1 ％+ 3.0 pt

Turnover Rate*

9.6 ％14.8 ％+ 5.2 pt

Increase

0.0 ％

0.2 ％

+ 0.2 pt

Increase

24.1 ％

30.5 ％+ 6.4 pt

Flat

96.7 ％

94.8 ％- 1.9 pt

Flat

11.1 ％

16.5 ％+ 5.4 pt

3.3 ％

5.0 ％

+ 1.7 pt

Decrease

64.8 ％

53.0 ％- 11.8 pt

Decrease*Renewal Rate=Number of renewed units / Number of units which have reached time of renewal*Turnover Rate=Newly leased units / Total number of leasable units (Based on regularly occupied properties)

12Changes in Revenue
Changes in Rent per Tsubo and Occupancy Rate (8th FP End-12th FP End (forecast))[Rent per Tsubo](Rent per Tsubo)[Reference]
Rent/Tsubo (Greater Tokyo Area)

Rent/Tsubo (Other Areas)

Rent/Tsubo (Total)

Rent
per Tsubo

12th FP End[forecast](Nov. 30, 2012)

8th FP End(Nov. 30, 2010)

9th FP End(May 31, 2011)

10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

Total¥11,295¥11,156¥11,039¥10,662¥10,637

GreaterTokyo¥12,551¥12,388¥12,326¥12,325

－

Other
Areas

¥7,026¥6,996¥7,149¥7,302－

8th FP End(Nov. 30, 2010)

9th FP End(May 31, 2011)

10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End[forecast](Nov. 30, 2012)

Total

96.3%

96.1%

96.8%

96.2%

96.4%

Greater
Tokyo

96.0%

95.7%

96.4%

95.5%

－

Other
Areas

97.2%

97.5%

97.8%

97.7%

－

8th FP End(Nov. 30, 2010)

9th FP End(May 31, 2011)

10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End[forecast](Nov. 30, 2012)

10.5%

14.8%

9.6％

14.8％

9.3％

15,00012,500Details

10,000Total ¥11,295¥11,156¥11,039

Forecast¥10,662(reference)¥10,637
7,500

5,000

8th FP End(Nov. 30, 2010)

9th FP End(May 31, 2011)

10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End [forecast](Nov. 30, 2012)[Occupancy Rate][Reference]（％）

Occupancy Rate (Greater Tokyo Area)

Occupancy Rate (Other Areas)

Occupancy Rate (Total)

100.0

Occupancy
Rate
97.5

Details

Forecast

96.8%
95.0

Total 96.3%

96.1%

96.2%

(reference)

96.4%

92.5

[Reference](Reference)
90.0

8th FP End(Nov. 30, 2010)

9th FP End(May 31, 2011)

10th FP End(Nov. 30, 2011)

11th FP End(May 31, 2012)

12th FP End [forecast](Nov. 30, 2012)

Turnover
Ratio

Total

13

Asset Management Efforts
Strategy to Shorten Vacancy Period

Ordinary Period

Start of New Lease

Lease Termination Day

Notice of Lease Termination

Notified Period (1-6 months)

Build Relationships

Early Lease-up• Visit brokers specializingin corporate leasing

Efforts and insight of corporate tenat needs through relationships

Vacancy Period

Results
Property Name ： PU Kinshicho• Inquire of corporate demands• Negotiate leasing conditions (rent/incidental terms)

Leased Units： 49 units

Vacancy Period ： 2 days

• Adjust restoration construction work in light of leasing period• Send leasable property
information regularly

Property Name ： US Kasai East
Leased Units： 78 units

Vacancy Period ： 01 day(Reference) Ratio of Corporate and Individual Lease Agreements

Property Name ： PU Gyotoku Ⅱ
Leased Units
Individual
Lease
Agreements

Corporate
Lease
Agreements

53.7 %

46.3 %： 58 units

Vacancy Period ： 32 days

11th Fiscal Period Average Vacancy Period※

Corporate lease for whole building ： 7.4%(8propeties)

52days(Difference to previous period: -16 days)※ Lease agreement for all units of a property to a single corporate company

14

Financial Status (11th Fiscal Period End)Interest-bearing Debt

Maturity Diversification（

Interest-bearing
Debt Total

Difference fromprevious FP¥83,182 million (+ ¥8,966 million)

Average Remaining Duration ofInterest-bearing Debt
Weighted
Average Interest Rate

(millions of yen)
30,000

Repayment

AmountDate(millions of yen)

25,0002.4 years( + 1.0 years )Aug. 27, 2012

20,0001.28 %

Lender2,200

Daido Life Insurance

2,600

The Bank of Tokyo-Mitsubishi UFJ

1,720

Shinkin Central Bank

5,990

The Bank of Tokyo-Mitsubishi UFJ( - 0.19 pt )15,000Long-term
Interest-bearing Debt Ratio[Details]

76.2 %( + 27.2 pt )12,6007,190

Fixed-rate
Interest-bearing Debt Ratio

84.5 %( + 14.2 pt )LTV Level

53.1 %( + 0.1 pt )

9,790

9,290

10,000

7,790

6,362

6,350

3,490

5,000

0
12th
FP

13th
FP

14th
FP

15th
FP

16th
FP

17th
FP

18th
FP

*Investment Corporation Bonds are included in the “Interest-bearing Debt.”*Long-term Ratio, when including “long-term loans due within a year” in long-term loans, is 100.0%.
*“Loan Interest Rate Fixed Ratio” includes floating rate loans which have been fixed through interest rate swaps.

Credit Rating

10,530

9,790

19th
FP
1st
Investment
Corporation
Bond

20th
FP

21st
FP
2nd
Investment
Corporation
Bond

Lender Diversification (19 Lenders)(millions of yen)

AgencyRatingJCR

Long-term Senior Debt Ratins

Outlook：AA

Long-term Corporate Credit Ratins：

A

Short-term Corporate Credit Ratins：

A-1

StableStableMajor Banks (4)Trust Banks (4)Regional Banks (4)The Bank of Tokyo-Mitsubishi UFJ

11,524 Mitsubishi UFJ Trust and Banking

11,524 The Iyo Bank

1,000

Sumitomo Mitsui Banking

11,524 The Sumitomo Trust and Banking

4,920 The Bank of Fukuoka

1,000

Mizuho Corporate Bank

6,620 The Nomura Trust and Banking

3,700 The Chiba Bank

750

Resona Bank, Limited

1,900 Mizuho Trust & Banking co., Ltd

1,000 The Tokyo Tomin Bank, Ltd.

500

S&P
Insurance Companies (4)Others (3)Taiyo Life Insurance

3,000 Development Bank of Japan

Mitsui Sumitomo Insurance

2,100 Aozora Bank

Daido Life Insurance

1,100 Shinkin Central BankThe Dai-ichi Life Insurance

800

8,000
500
1,720

Total borrowings

73,100Investment Corporation bonds

10,000(Reference)15

Appraisal Value Status (11th Fiscal Period End)
Appraisal Value
Appraisal Value Details
10th FP End Appraisal Value (A)*¥140,112 million

11th FP End Appraisal Value (B)¥141,011 million

 Increase

68 properties ( 044.7 %) Flat29 properties ( 019.1 %) Decrease 55 properties ( 036.2 %)+ ¥899 million

Difference (B)-(A)Total

152 properties ( 100.0 %)[Reference]
 BPS

：

¥469,193

 NAV per Unit：

¥408,976

Range of Cap Rate and Book-to-Market Ratio（％）

Average Cap Rate

5.70

5.61％

5.58％

5.60
5.50

5.57％

Book-to-Market Ratio

5.47％（ - 0.08pt）

5.43％

5.46％

1.00

（ - 0.01pt）

5.40

0.95

0.94x

5.30
5.20

1.05

5.55％
（ - 0.02pt）

0.96x

（x )

5.18％

0.92x
0.89x

0.90x

0.90x

0.91x

0.92x

（ + 0.02pt）（ + 0.01pt）

5.10

0.90

0.85
4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP*10th FP End Appraisal Value” includes the appraisal value at the time of acquisition of the 8 properties acquired during the 11th FP.
It also excludes the appraisal value of 1 property disposed during the 11th FP.

16

Details of the Financial Results

17Income Statement

Operating Revenue
Real Estate Rental Business Revenues*1

Rental Business Revenues
Other Rental Business Revenues
Parking Lot Revenue*Reference (11th Fiscal Period)

Difference from10th Fiscal Period

11th Fiscal Period

From Jun. 1, 2011

From Dec. 1, 2010

Previous Period

To Nov. 30, 2011

To May 31, 2011

(11th FP - 10th FP)

Amount(￥000)
4,445,212

Amount(￥000)
5,250,116

Difference(￥000)
804,904

Difference
Ratio
18.1%

4,445,212

5,241,740

796,52817.9%

4,189,274

4,834,854

645,58015.4%

255,937

406,885

150,94859.0%

111,037

137,119

26,082

23.5%

Incidental Revenue*2

97,010202,518

105,507108.8%

Other Real Estate Rental Revenue*347,88967,247

19,35840.4%

Real Estate Disposition Revenue
Operating Expense

－

8,376

8,376

－

2,346,902

2,743,049

396,14616.9%*11,824,880

2,188,737

363,856

19.9%

Repair Expenses*4

194,865

224,630

29,76415.3%

Tax and Public Dues

*5216,085

233,821

17,736

8.2%

Depreciation and Amortization

803,845

963,023

159,177

19.8%

Other Rental Business Expenses

610,084

767,262

157,17825.8%

322,965

365,310

42,345

13.1%

199,056

189,001-10,055-5.1%

2,098,309

2,507,067

408,75719.5%
398.9%

Real Estate Rental Business Expenses

Asset Management Fees
Other Operating Expenses*6

Operating Profits
Non-Operating Revenues

1,520

7,586

6,065

Non-Operating Expenses

620,690

657,10936,418

5.9%Interest Expenses

546,469

518,259-28,210-5.2%

30,31944,156

13,83745.6%

43,90094,69350,792115.7%

Ordinary Income

1,479,139

1,857,544

378,404

25.6%

Net Income Before Tax

1,479,139

1,857,544

378,404

25.6%

1,605

702

-902

-56.2%

1,477,534

1,856,841

379,307

25.7%

Retained Earnings Brought Forw ard

63

50

-12

-19.8%

Retained Earnings at Fiscal Period End

1,477,597

1,856,892

379,294

25.7%

Investment Corporation Bond Interest
Other Non-Operating Expenses

Corporate Income Tax, etc.
Net Income*7

1. Real Estate Rental Business Revenues : ¥3,053,003 thousand(from previous FP :¥432,671 thousand)
2. Incidental Revenue
2. Key Money
2. Renewal Fee::¥99,424 thousand¥87,440 thousand

3. Other Real Estate Rental Revenue
3．Revenue from reversal of provision for loss on disaster, cellphoneantennae, vending machines, etc.
4. Renovation Expenses
4．Repair Expenses
4．Capital Expenditure
Total

:
:
:

¥224,630 thousand¥41,261 thousand¥265,891 thousand

5. Tax and Public Dues (152 properties at FP End)
5．Subject Property:
5．Excluded Property
:
Total
:

149 properties
3 properties
152 properties(estimate: ￥17,767 thousand)6. Other Operating Expenses
6．Duty Entrustment Fee
6．Directors Fee, etc.

::

¥37,148 thousand¥7,200 thousand

7. Other Non-Operating Expenses
7．Loan Related Expense, etc.

:

¥65,263 thousand(Figures are rounded down to the nearest thousand)18Balance Sheet
Liabilities and Net Assets

AssetsCurrent Assets

10th Fiscal Period
as of Nov. 30, 2011

11th Fiscal Period
as of May. 31, 2012

10th Fiscal Period
as of Nov. 30, 2011

11th Fiscal Period
as of May. 31, 2012

AmountRatio

AmountRatio(￥000)(%)(￥000)(%)

Amount(￥000)

Amount(￥000)

4,891,853

3.5

6,596,180

4.2

Cash and Cash Equivalents

3,702,311

2.6

5,419,384

3.5

Trade Accounts Payable

Cash and Cash Equivalent in Trust

1,084,101

0.8

1,058,705

0.7Long-term Loan Due Within One Year

Other Current Assets

Current Liabilities
＊

2

Ratio
(%)

Ratio
(%)

39,221,497

28.0

21,145,978248,277

0.2

222,550

13.5
0.1

37,834,000

27.0

19,790,000

12.6

268,405

0.2

263,019

0.2

1,566

0.0

605

0.0
0.1

105,4400.1

118,090

0.1

Other Accounts Payable

135,229,846

96.5

150,122,975

95.8

Taxes Payable

135,213,149

96.5

150,107,047

95.7

Accrued Expenses

250,7010.2

182,378

88,387,204

63.1

105,515,541

67.3

Rent Received in Advance605,7510.4

682,094

0.4

Building

41,096,244

29.3

52,533,366

33.5

Deposits Payable

4,294

0.0

5,330

0.0

Land

47,290,959

33.7

52,982,175

33.8

Real Estate in Trust

46,809,572

33.4

44,584,452

28.4

Building in Trust

15,130,784

10.8

14,234,988

9.1

Investment Corporation Bonds＊

2

Land in Trust

31,678,787

22.6

30,349,464

19.4

Long-term Loans＊

2

Fixed Assets＊

Tangible Fixed Assets
Real Estate

1Construction in Progress

Provision for Loss on Disaster
Fixed Liabilities

8,500

0.0

-

-

37,654,081

26.9

64,816,245

41.3

5,000,000

3.6

10,000,000

6.4

31,382,000

22.4

53,392,000

34.1
0.6

16,372

0.0

7,053

0.0

Security Deposits

742,7840.5

935,087

4,259

0.0

3,622

0.0

Security Deposits in Trust

529,2960.4

489,158

0.3

4,259

0.0

3,622

0.0

76,875,578

54.9

85,962,224

54.8

Investment and Other Assets

12,4380.0

12,3050.0

63,277,082

45.1

70,818,214

45.2

Security Deposits

10,8790.0

10,8790.0

Unitholders Capital

61,799,485

44.1

68,961,322

44.0

Long-term Repaid Expenses

1,559

0.0

1,426

0.0

Retained Earnings

1,477,597

1.1

1,856,892

1.2

30,9610.0

61,2820.0

Intangible Fixed Assets
Other Intangible Fixed Assets

Deferred Assets*

30,9610.0

61,2820.0

Total Net Assets

63,277,082

45.1

70,818,214

45.2

100.0

156,780,439

100.0

Total Liabilities and Net Assets

140,152,661

100.0

156,780,439

100.0(unit : million of yen)

1 Tangible Fixed Asset

Real Estate, etc.
Building
Land
Building in trut
Land in trust
Construction in progress

Unitholders Equity

140,152,661

Investment Corporation Bond Issuing Expenses

Total Assets

Total Liabilities

AcqisitionPrice

Accumulated
depreciation(Depreciation for
current FP)

Book value
at FP end

157,71257,551
52,982
16,82230,349
7

7,605
5,017
－
2,587
－
－

(963)
(742)
－
(220)
－
－

150,10752,53352,982
14,23430,3497*2 Loans (long-term loans due whithin a year are included in the short-term loans)
Balance of interest-bearing debts (millions of yen)

83,182

Total asset interest-bearing debt ratio

short-term loans+bonds＋Long-term loans
total assets

53.1％

Long-term interest-bearing debt ratio

bonds＋Long-term loans
short-term loans+bonds＋Long-term loans

76.2％

19

Forecasts for the 12th Fiscal Period
11th FP
From Dec. 1, 2011
To May 31, 2012
Amount(millions of yen)
Operating Revenue

12th FP Forecast
From Jun. 1, 2012
To Nov. 30, 2012
Amount(millions of yen)

Difference
Amount(millions of yen)

Assumptions[Properties]
Number of Properties
Total Amount of Acquisition Price::

153 properties¥150,587 million

5,250

5,182

-67

5,241

5,182

-59

8

-

-8

2,743

2,737

-5

2,188

2,134

-53

Repair Expenses

224

190

-34

Tax and Public Dues

233

261

27

Depreciation and Amortization

963

969

6

Asset Management Fees

365

377

12

Other Operating Expenses

189

225

36

Operating Profits

2,507

2,445

-62

Non-Operating Profit and Loss

-649

-587

62

Interest Expenses

-627

-577

50

Total Interest-bearing Debt (as of Jul. 18, 2012)

Ordinary Income

1,857

1,857

0

Interest-bearing Debt Repayment Due During 11th FP (after Jul. 18)

Net Income

1,856

1,856

-0

Real Estate Rental Business Revenues
Real Estate Disposition Revenue
Operating Expense
Real Estate Rental Business Expenses

Number of Investment Units Issued(units)150,936

150,936-

Cash Distribution Per Unit(yen)

12,302

12,300-2(properties)

152

153

1

Number of Properties
Leasable Floor Area
Occupancy Rate Assumption(sqm)

251,447

261,276

9,829

(%)

96.2

96.4

0.2

[Repair Expenses]¥265 million for 11th Fiscal Period(¥41 million of which is capital expenditure)
Example)US Hatagaya (large-scale renovation)
US Ikegami (pluming system renewal)::¥14 million¥04 million¥269 million for 12th Fiscal Period(¥79 million of which is capital expenditure)
Example)US Komagome (unit renovation)
US Chitose Karasuyama (large-scale renovation): ¥46 million: ¥33 million[Loans]Repayment through loans (Aug 2012)
Agreed repayment (Aug 2012)¥83,982 million¥12,510 million¥90 million

Difference in Forecasts
Announced
Jun. 1, 2012

Announced
Jul. 13, 2013

Operating Revenue¥5,155 million¥5,182 million¥ 26 million

Operating Profits¥2,425 million¥2,445 million¥ 19 million

Net Income
Cash Distribution per Unit

Difference¥1,840 million¥1,856 million¥ 15 million¥12,195¥12,300¥ 105

20

Unitholders (11th Fiscal Period End)※ Unitholders (11thFP)

Changes in Ratio of Units Held by Unitholders

Increase in Investment Trusts（units）
160,000

12.1% 19.8%
15.4%

80,00040,000

Increase in regional financial institutions

Individuals/Others( 26,399 unit

150,936 units
19.8%
20.6%
125,535 units

120,000



9.7%

16.9%

9.7%

10.6% 16.9%

15.4%

15.1% 10.6%

55.1%

17.5%

17.5%

13.0%

12.9% 19.2%

12.9%

15.2%

13.3% 13.0%

13.3%

15.1%

15.4%

51.9%

19.2%

55.1%

57.4%
57.4%

9,524 unitholders )Foreign Corporations, etc.
( 19,412 unit
106 unitholders )Domestic Corporation (excluding Financial Institutions)( 20,139 unit
167 unitholders )15.2%

Financial Institutions (including Securities Companies)( 84,986 unit
98 unitholders )

56.3%

52.7%

56.3%
52.7%

0

[Financial Institutions]Total

8th FP

69,161 units

9th FP

55.1%

72,093 units

10th FP

57.4%

66,096 units

11th FP

52.7%

84,986 units

56.3%

Banks

6,043 units

4.8%

6,131 units

4.9%

5,907 units

4.7%

10,282 units

6.8%

Trust Banks

47,733 units

38.0%

53,258 units

42.4%

49,472 units

39.4%

63,816 units

42.3%

Life Insurance

3,505 units

2.8%

3,435 units

2.7%

1,954 units

1.6%

2,248 units

1.5%

Non-life Insurance

2,210 units

1.8%

1,665 units

1.3%

1,665 units

1.3%

830 units

0.5%

Securities
Companies, etc.

3,233 units

2.6%

2,127 units

1.7%

1,589 units

1.3%

1,965 units

1.3%

Other

6,437 units

5.1%

5,477 units

4.4%

5,509 units

4.4%

5,845 units

3.9%

Top 10 Unitholders
Units

Ratio (%)

#

Units

Ratio (%)

1#

Japan Trustee Services Bank, Ltd.

Unitholders

35,30823.39

6

Nomura Bank (Luxembourg) S.A.

Unitholders

4,210

2.79

2

Nomura Real Estate Development Co., Ltd.

15,240

10.10

7

The Bank of New York Treaty Jasdec Account

3,617

2.40

3

The Nomura Trust and Banking Co., Ltd.

10,656

7.06

8The Joyo Bank, Ltd.

2,190

1.45

4

Trust and Custody Services Bank, Ltd.

7,467

4.95

9

Trust and Custody Services Bank, Ltd.

1,734

1.15

5

The Master Trust Bank of Japan, Ltd.

6,447

4.27

10 The Gibraltar Life Insurance Co., Ltd.

1,608

1.07

88,477

58.62

Total

(Note) The Ratio is calculated as the percentage of Total Number of Owned Investment Units divided by Total Number of Issued Investment Units.

21

Changes in Investment Unit Price and Cash Distribution
Changes in Investment Unit Price
Investment Unit Price (yen)Investment Unit Price

1,000,000

TSE REIT Index

TSE REIT Index

3,000

Mar. 29, 2007
Highest Price:¥979,000

2,700
Mar. 14, 2011
BOJ Announces
Additional Purchase of J-REIT

800,000

Septermber 2008
Lehman Brothers Bankruptcy

600,000

2,400

Apr. 26, 2012
BOJ Announces
Additional Purchase of J-REIT

2,100

Mar. 11, 2011
Great Eastern Japan Earthquake

Nikkei Stock AverageMar. 10, 2009
Lowest: 7,054.98

1,800

Feb. 14, 2012
Enhancement of Monetary Easing

Oct. 5, 2010
BOJ Announces
Purchase of J-REITs

1,500
1,200

400,000

900

1st PO¥12.5 billion

200,000

600
2nd PO¥8.0 billion

Jan. 15, 2009
Lowest Price:¥287,600

0Feb. 142007

May. 312007
1st FP

Nov. 30
2007

2nd FP•BPS ¥469,193

May. 312008

3rd FP

Nov. 30
2008

4th FP

3rd PO¥7.1 billion

May 31, 2012
¥390,000

300
0May. 312009

5th FP

Nov. 30
2009

6th FP

May. 312010

7th FP

Nov. 302010

8th FP

May. 312011

9th FP

Nov. 302011

10th FPMay. 312012

11th FP

Changes in Cash Distribution（yen）Stability and Growth of Cash Distribution

20,00016,00013,91012,30013,631

12,127

12,0008,000

14,14414,005

11,046

12,068

11,674

11,77012,302[Forecast]

8,102

4,000
0
1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FPMay 31, 2007

Nov. 30, 2007

May 31, 2008

Nov. 30, 2008

May 31, 2009

Nov. 30, 2009

May 31, 2010

Nov. 30, 2010

May 31, 2011

Nov. 30, 2011

May 31, 2012

Nov. 30, 201222

ＡＰＰＥＮＤＩＸ

23

Current Status and Outlook of Rental Housing Market
Changes in Number of Households (“Total ””Singles””DINKs”) [Greater Tokyo Area]
Changes in Total Number of Households and Singles/DINKs Households(Thousand Households)

16,00015,414

15,253

14,91815,415

15,268Singles/160
DINKs(158%)

13,157140
Total
Number ofHouseholds(124%) 120

Over 50% of the total
number of households

12,318180

Peak of Numberof Households

13,757

14,000(%)

200

12,000100
10,000

1995

2000

2005

2010

2015

2020

2025

2030

• Households due to start decline in 2025
• Single and DINKs households will continue to increase• Over 50% of the household ratio after 2005 aresingles and DINKs households
Small households, such as singles/DINKs,
will continue to steadily increase.

80

Source: National Institute of Population and Social Security Research

Changes in Number of Net Inflow and Rental Housing Under Construction [23 Wards of Tokyo](unit/person)

Number of Building Starts

70,00059,49660,163

Net incomings
59,06960,00049,04552,94950,61250,00049,06943,428• Excess population inflow will continue in Tokyo

Gap in Demand
38,56740,00043,371

32,92539,08430,00020,00030,76523,831

33,101• A demand/supply gap will potentially occur
30,652

31,88026,512

25,88821,71810,00017,054

17,9942010

2011

Stable tenant demandLess Supply

0
2001

2002

2003

2004

2005

2006

2007

2008

2009

Source: Ministry of Land, Infrastructure, Transport and Tourism, Policy Bureau, Information Security, Research and Statistics DivisionTokyo Metropolitan Government Bureau of General Affairs

24Selective Investment of “Core Units”
Core Units(rent ¥150,000 or less, floor area under 50 sqm)

Target Tenant Class with Strong Demands
and Stable Rent Potential(units)

NRF Rent Distribution： Most Distributed

Aｔ 11th Fiscal Period End

3,500¥ 1 50,000 o r less

3,000

9 3 .6 ％2,500

Unit Ratio(Occupancy Ratio
Characteristics

4,557 units
1,875

2,000
1,500

1,331

：

87.8 %：

96.7 %)：

Single/DINKs units
in Greater Tokyo Area：
Unit Ratio
3.1 %(Occupancy Ratio ：93.3 %)
Characteristics ：Expensive units
in Central Tokyo

1,351
Low Units with rent ¥150,000 or less and floor area under 50 sqm
Rent

1,000
500

Unit Ratio(Occupancy Ratio
Characteristics* ¥200,000 or more
Approx. 0.9%

0～¥60,000～¥80,000～¥100,000～¥120,000～¥140,000～¥160,000～¥180,000～¥200,000¥210,000～～¥70,000～¥90,000～¥110,000～¥130,000～¥150,000～¥170,000～¥190,000～¥210,000(units)

Small
Area

Core Units

NRF Floor Area Distribution： Most Distributed

3,963 units

：
：
：

6.2 %
96.6 %)
Family unitsin Major Regional Cities

High
Rent

¥150,000
50 sq. meters：
Unit Ratio
2.9 %(Occupancy Ratio ：93.3 %)
Characteristics ：Family units
in Central Tokyo/Suburbs
Large

Area

ChangesininOccupancy
OccupancyRate
RateofofCoreCoreUnits
Units
Changes
100%

4,000

3,608

Le ss t han 5 0sqm

3,500

96.9%

9 0 .9 ％
3,000

96.2%

96.4%

96.4%

95.8%
94.4%

95%

96.5%

96.3%

96.7%

96.7%

8th FPEnd

9th FPEnd

10th FPEnd

11th FPEnd

93.6%

6,228units

2,500
2,000

Average 95.9 ％

90%

1,500

1,268

Average 95.8%

1,352

1,000

85%

500
0
-15sqm20-25sqm
30-35sqm
40-45sqm
50-55sqm
60-65sqm
70-75sqm
80-85sqm
90sqm15-20sqm
25-30sqm
35-40sqm
45-50sqm
55-60sqm
65-70sqm
75-80sqm
85-90sqm

80%
1st FPEnd

2nd FPEnd

3rd FPEnd

4th FPEnd

5th FPEnd

6th FPEnd

7th FPEnd*Units : 8,833 units (only residential units) (as of 11th FP End)

25

Portfolio Status (11th Fiscal Period End)
Diversification Within Assets

11.

4%■Top 5 Properties¥17.10 billion

25.8%

Building Age■Over 10 years

Improve portfolio stability
through promotion ofdiversification

Considering the combination ofvarious building age to avoid thebias of large-scale repair
expenses⇒Top 10 Properties 19.8%⇒Average Building Age
9.0 Years

80.

2%■Other 142 Properties¥120.17 billion

Investment Area

19.1%

19.

8%
■Top 10 Properties¥29.69 billion

80.

9%■Greater Tokyo Area

■Other Areas

35.8%■5-10 years

Floor Area Per Unit

0.

9%■Over 70 sqm

1.9%■1-3 years

36.

5%■3-5 years

0.5%■Retail & Office8.

Greater Tokyo Area 70% or more

Investing in properties targeting
single/DINKS/young family
households for theforeseeable future

13.6%
Other Areas

Other Areas 30% or less

(Kanagawa,Chiba, Saitama)⇒Greater Tokyo Area 80.9%⇒Under 50 sqm
3.9%

Nearest Station on Foot 6.9%
■Over 10 min.

90.4%

18.6%

63.4%

Tokyo (excluding the 23 wards)■30-50 sqm

Tokyo (23 wards)

56.3%

Units Per Property■Within 5 min.

23.1%
■Over 100 Units

Selection focusing onaccessibility to the nearest
railway stations

Investing in properties withstrong lease-up potential in ashort timeframe⇒Within 10 min. 93.1%⇒Average Unit Per Property
58 Units

36.8%

2%■50-70 sqm■5-10 min.

43.5%
■50-100 Units

71.

8%■Under 30 sqm

8.5%■Under 30 Units24.

9%■30-50 Units*Of the graphs above, “Floor area per unit” is based on units, the others are based on acquisition price.

26

Portfolio Map (152 Properties)
Saitama
Kawaguchi

Adachi-ku

Greater Tokyo Area

Itabashi-ku

119 Properties

Kita-ku

Chiba

Nerima-ku
Katsushika-ku
Arakawa-ku
Toshima-ku

Ikebukuro
Taito-ku

Bunkyo-ku

Takadanobaba

Sumida-ku

Ueno

Kichijoji

Tachikawa

Nishi
Funabashi

Edogawa-ku
Suginami-ku

Nakano-ku

Shinjuku-ku
Shinjuku
Chiyoda-ku

TokyoKoto-kuChuo-ku

Shibuya-ku

Shibuya

Other Areas

Urayasu

Minato-ku

Setagaya-ku

33 Properties

Shinagawa

Sapporo13 properties

Meguro-ku

Shinagawa-ku

Osaka
5 properties

Sendai5 properties

Ota-kuKanagawa
Haneda Airport

Nagoya5 properties

Yokohama

Fukuoka
5 properties
JR Lines
Other Lines*Greater Tokyo Area
(Tokyo, Kanagawa, Chiba, Saitama)

27

Portfolio
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

Name of Property
PROUD FLAT Shirokane Takanawa
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT Meguro Gyoninzaka
PROUD FLAT Sumida Riverside
PROUD FLAT Kagurazaka
PROUD FLAT Waseda
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Sangen Jaya
PROUD FLAT Kamata
PROUD FLAT Kamata II
PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT Monzen Nakacho II
PROUD FLAT Monzen Nakacho I
PROUD FLAT Fujimidai
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PROUD FLAT Tsurumi II
PRIME URBAN Akasaka
PRIME URBAN Tamachi
PRIME URBAN Yoyogi
PRIME URBAN Bancho
PRIME URBAN Chiyoda Fujimi
PRIME URBAN Iidabashi
PRIME URBAN Ebisu
PRIME URBAN Naka Meguro
PRIME URBAN Gakugei Daigaku
PRIME URBAN Senzoku
PRIME URBAN Meguro Riverside
PRIME URBAN Meguro Ohashi Hills
PRIME URBAN Hakusan
PRIME URBAN Yotsuya Gaien Higashi

Location
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Nerima-ku, Tokyo
Taito-ku, Tokyo
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Minato-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo

Acquisition Price(thousands of yen)
3,510,000
1,100,000
865,000
800,000
812,000
882,000
2,260,000
1,540,000
1,110,000
1,010,000
1,350,000
1,140,000
2,980,000
695,000
900,000
650,000
1,130,000
1,370,000
1,960,000
2,340,000
2,770,000
1,430,000
956,000
941,000
408,000
1,170,000
707,000
2,030,000
1,200,000
1,320,000
886,000
536,000
464,000
3,580,000
893,000
1,700,000

Percentage of
Leasable Floor Area Leasable Units Occupancy Rate (endTotal (%)
(sqm)
(units)of 11th FP)(%)
2.3
2,950.11
106
96.6
0.7
1,151.34
44
100.0
0.6
958.9831
100.0
0.5
638.7030
96.7
0.5
934.394195.4
0.6
855.2340
97.5
1.5
3,055.21
110
92.8
1.0
1,793.43
70
95.2
0.7
1,450.91
60
95.3
0.7
1,102.20
41
92.3
0.9
1,277.82
48
98.3
0.8
1,541.64
67
98.5
2.0
4,051.72
169
96.8
0.5
752.0935
100.0
0.6
1,209.56
55
100.0
0.4
830.5535
94.9
0.8
1,191.08
55
96.4
0.9
2,222.05
94
100.0
1.3
2,685.39
79
95.7
1.6
3,118.12
113
100.0
1.8
4,872.17
200
100.0
1.0
2,219.74
81
98.1
0.6
1,062.05
25
96.7
0.6
1,107.36
48
98.1
0.3
439.5619
96.0
0.8
1,277.04
52
98.2
0.5
793.8732
96.6
1.4
2,087.70
90
96.8
0.8
1,444.40
29
89.9
0.9
1,302.42
49
100.0
0.6
1,008.39
32
90.1
0.4
655.2722
100.0
0.3
453.7724
96.0
2.4
2,955.74
99
92.1
0.6
1,069.82
42
95.7
1.1
1,759.11
51
93.9

28

Portfolio
#
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72

Name of Property
PRIME URBAN Nishi Shinjuku I
PRIME URBAN Nishi Shinjuku II
PRIME URBAN Shinjuku Naitomachi
PRIME URBAN Nishi Waseda
PRIME URBAN Sangen Jaya
PRIME URBAN Minami Karasuyama
PRIME URBAN Karasuyama Galleria
PRIME URBAN Karasuyama Court
PRIME URBAN Chitose Funabashi
PRIME URBAN Shinagawa Nishi
PRIME URBAN Osaki
PRIME URBAN Omori
PRIME URBAN Kita Senzoku
PRIME URBAN Denenchofu Minami
PRIME URBAN Nakano Kamitakada
PRIME URBAN Nishi Ogikubo
PRIME URBAN Otsuka
PRIME URBAN Monzen Nakacho
PRIME URBAN Kameido
PRIME URBAN Sumiyoshi
PRIME URBAN Kinshi Koen
PRIME URBAN Kinshicho
PRIME URBAN Hirai
PRIME URBAN Kasai
PRIME URBAN Kasai II
PRIME URBAN Shinyurigaoka
PRIME URBAN Urayasu
PRIME URBAN Gyotoku I
PRIME URBAN Gyotoku II
PRIME URBAN Gyotoku Ekimae
PRIME URBAN Nishi Funabashi
PRIME URBAN Kawaguchi
URBAN STAGE Azabu Juban
URBAN STAGE Shibaura LOFTURBAN STAGE Hatagaya
URBAN STAGE Toritsu Daigaku

Location
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Kawasaki-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Funabashi-shi, Chiba
Kawaguchi-shi, Saitama
Minato-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Meguro-ku, Tokyo

Acquisition Price(thousands of yen)
1,290,000
1,000,000
512,000
503,000
835,000
840,000
645,000
413,000
885,000
624,000
1,700,000
824,000
576,000
900,000
640,000
435,000
794,000
2,200,000
705,000
552,000
1,180,000
668,000
700,000
637,000
958,000
1,210,000
840,000
635,000
741,000
476,000
772,000
2,170,000
991,000
1,510,000
452,000
524,000

Percentage of
Leasable Floor Area Leasable Units Occupancy Rate (endTotal (%)
(sqm)
(units)of 11th FP)(%)
0.9
1,459.86
60
96.8
0.7
1,162.55
46
97.8
0.3
578.181493.1
0.3
507.1128
100.0
0.6
874.1533
94.2
0.6
1,049.73
41
90.4
0.4
835.0533
100.0
0.3
576.2023
100.0
0.6
1,027.44
38
92.5
0.4
961.2546
91.8
1.1
2,106.16
99
98.0
0.5
1,190.70
54
98.1
0.4
834.9046
93.5
0.6
1,100.17
44
100.0
0.4
818.7533
100.0
0.3
543.0924
95.9
0.5
944.9946
91.5
1.5
3,207.92
118
98.3
0.5
1,117.34
52
98.1
0.4
813.5240
87.5
0.8
1,886.50
77
98.7
0.4
991.6249
100.0
0.5
1,095.91
53
90.5
0.4
905.8145
95.6
0.6
1,437.84
68
89.7
0.8
1,708.19
64
100.0
0.6
1,264.84
60
95.0
0.4
1,151.36
52
98.1
0.5
1,244.00
58
100.0
0.3
778.1937
97.3
0.5
1,237.80
60
96.7
1.4
2,477.11
98
97.5
0.7
1,222.13
40
100.0
1.0
1,905.39
68
94.6
0.3
650.6038
97.4
0.3
996.81
16
100.0

29

Portfolio

#
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108

Name of Property
URBAN STAGE Kachidoki
URBAN STAGE Shinkawa
URBAN STAGE Nihonbashi Yokoyamacho
URBAN STAGE Hongo Ikizaka
URBAN STAGE Naka Ochiai
URBAN STAGE Ochiai
URBAN STAGE Shinjuku Ochiai
URBAN STAGE Roka Koen
URBAN STAGE Kamiuma
URBAN STAGE Sangen Jaya
URBAN STAGE Chitose Karasuyama
URBAN STAGE Sangen Jaya II
URBAN STAGE Komazawa
URBAN STAGE Karasuyama
URBAN STAGE Kamikitazawa
URBAN STAGE Yoga
URBAN STAGE Oimachi
URBAN STAGE Oimachi II
URBAN STAGE Yukigaya
URBAN STAGE Ikegami
URBAN STAGE Nakano
URBAN STAGE Takaido
URBAN STAGE Komagome
URBAN STAGE Mukojima
URBAN STAGE Kasai East
URBAN STAGE Ekoda
URBAN STAGE Takinokawa
URBAN STAGE Itabashi Kuyakushomae
URBAN STAGE Asakusa
URBAN STAGE Machiya
URBAN STAGE Machiya South Court
URBAN STAGE Koganei
URBAN STAGE Musashi Koganei
URBAN STAGE Musashino Hills
URBAN STAGE Hino
URBAN STAGE Kumegawa

Location
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Nerima-ku, Tokyo
Kita-ku, Tokyo
Itabashi-ku, Tokyo
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Hino-shi, Tokyo
Higashimurayama-shi, Tokyo

Acquisition Price(thousands of yen)
2,290,000
2,250,000
3,530,000
647,000
655,000
324,000
635,000
362,000
900,000
755,000
730,000
539,000
396,000
344,000
738,000
1,150,000
530,000
1,100,000
970,000
1,460,000
472,000
1,080,000
412,000
487,000
940,000
385,000
287,000
940,000
350,000
210,000
1,740,000
229,000
2,390,000
1,590,000
319,000
1,370,000

Percentage of
Leasable Floor Area Leasable Units Occupancy Rate (endTotal (%)
(sqm)
(units)of 11th FP)(%)
1.5
4,524.00
145
89.8
1.5
3,600.61
46
95.0
2.4
5,926.17
124
96.1
0.4
662.5827
92.6
0.4
1,237.98
18
89.9
0.2
517.5332
96.8
0.4
1,053.39
28
93.9
0.2
567.2034
82.5
0.6
1,739.86
37
92.3
0.5
1,018.72
47
98.3
0.5
1,774.01
27
92.4
0.4
810.9817
100.0
0.3
572.4126
100.0
0.2
507.5228
96.7
0.5
1,384.45
29
100.0
0.8
1,773.05
54
96.2
0.4
722.7045
100.0
0.7
1,782.26
93
95.6
0.6
1,536.59
94
97.9
1.0
2,456.48
95
93.8
0.3
801.3051
94.7
0.7
1,746.20
107
95.3
0.3
990.1819
66.4
0.3
1,108.91
55
92.7
0.6
1,884.62
78
100.0
0.3
872.4935
100.0
0.2
554.3929
94.5
0.6
1,742.64
68
92.9
0.2
876.7022
100.0
0.1
455.1926
92.2
1.2
4,141.56
77
95.9
0.2
682.4327
97.2
1.6
5,999.80
98
91.4
1.1
2,961.06
80
92.9
0.2
994.685496.3
0.9
2,610.05
91
96.8

30

Portfolio
#
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143

Name of Property
URBAN STAGE Musashi Kosugi comodo
URBAN STAGE Kawasaki
URBAN STAGE Tsurumi Teraya
URBAN STAGE Urayasu
URBAN STAGE Minami Gyotoku I
URBAN STAGE Minami Gyotoku II
URBAN STAGE Minami Gyotoku III
URBAN STAGE Minami Gyotoku IV
URBAN STAGE Gyotoku Ekimae
URBAN STAGE Minami Gyotoku V
URBAN STAGE Gyotoku
Greater Tokyo Area
PROUD FLAT Itsutsubashi
PROUD FLAT Kawaramachi
PROUD FLAT Shin Osaka
PRIME URBAN Yamahana
PRIME URBAN Kita Juyo Jo
PRIME URBAN Odori Koen I
PRIME URBAN Odori Koen II
PRIME URBAN Kita Juichi Jo
PRIME URBAN Miyanosawa
PRIME URBAN Odori Higashi
PRIME URBAN Chiji Kokan
PRIME URBAN Maruyama
PRIME URBAN Kita Nijuyo Jo
PRIME URBAN Sapporo Idaimae
PRIME URBAN Nagamachi Icchome
PRIME URBAN Yaotome Chuo
PRIME URBAN Aoi
PRIME URBAN Kanayama
PRIME URBAN Tsurumai
PRIME URBAN Esaka I
PRIME URBAN Esaka II
PRIME URBAN Esaka III
URBAN STAGE Sapporo Riverfront
URBAN STAGE Kita Sanjo Dori

Location
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Sendai-shi, Miyagi
Sendai-shi, Miyagi
Osaka-shi, Osaka
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, Miyagi
Sendai-shi, Miyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Suita-shi, Osaka
Suita-shi, Osaka
Suita-shi, Osaka
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido

Acquisition Price(thousands of yen)
2,150,000
1,150,000
457,000
277,000
357,000
285,000
263,000
256,000
561,000
293,000
948,000
121,235,000
682,000
724,000
1,430,000
377,000
336,000
530,000
322,000
600,000
576,200
424,000
337,900
283,200
503,700
731,600
1,110,000
428,000
724,000
632,000
1,189,096
672,000
790,000
1,535,000
3,500,000
1,450,000

Percentage of
Leasable Floor Area Leasable Units Occupancy Rate (endTotal (%)
(sqm)
(units)of 11th FP)(%)
1.4
3,690.37
56
89.9
0.8
1,706.46
80
96.7
0.3
952.0650
93.2
0.2
437.9427
88.9
0.2
682.0541
92.7
0.2
611.6137
86.5
0.2
542.6933
90.8
0.2
535.0832
96.9
0.4
927.3346
91.3
0.2
662.6838
90.0
0.6
1,766.47
77
100.0
80.9
176,047.52
6,499
95.5
0.5
1,861.56
60
100.0
0.5
1,967.54
64
98.6
1.0
2,990.68
112
99.2
0.3
1,518.58
33
93.9
0.2
1,155.60
36
87.4
0.4
1,850.20
53
100.0
0.2
1,148.72
36
100.0
0.4
1,851.39
60
98.3
0.4
2,114.53
54
98.4
0.3
1,494.36
36
100.0
0.2
1,007.30
42
100.0
0.2
911.0727
100.0
0.3
1,773.90
36
97.3
0.5
2,439.90
58
97.1
0.7
3,411.24
60
100.0
0.3
1,380.21
43
100.0
0.5
1,571.04
46
98.1
0.4
1,391.02
58
98.3
0.8
2,502.11
104
97.1
0.4
1,189.12
48
95.9
0.5
1,392.00
57
98.3
1.0
2,151.67
79
96.6
2.3
15,459.57
310
97.3
1.0
5,094.29
114
97.6

31

Portfolio
#
144
145
146
147
148
149
150
151
152

Name of Property
URBAN STAGE Tsutsumidori Amamiya
URBAN STAGE Kamimaezu
URBAN STAGE Izumi
URBAN STAGE Tamatsukuri
Benefis Hakata Grand Suite
Benefis Yakuin Minami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Suite
Benefis Chihaya Grand Suite
Other Areas
Total

Location
Sendai-shi, Miyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Osaka-shi, Osaka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka

Acquisition Price(thousands of yen)
969,000
1,250,000
2,800,000
906,000
830,000
351,000
396,000
693,000
545,000
28,627,696
149,862,696

Percentage of
Leasable Floor Area Leasable Units Occupancy Rate (endTotal (%)
(sqm)
(units)of 11th FP)(%)
0.6
4,251.91
65
98.6
0.8
3,541.43
101
95.3
1.9
7,543.10
250
97.9
0.6
2,373.10
80
100.0
0.6
2,176.23
67
98.9
0.2
897.8434
100.0
0.3
1,222.34
39
94.4
0.5
1,854.13
65
89.6
0.4
1,740.70
48
100.0
19.1
85,228.38
2,375
97.7
100.0
261,275.90
8,874
96.2

32

Changes in Financial Performance

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

Operating Revenues

million y en

3,959

4,323

4,466

4,510

4,445

5,250

Operating Profits

million y en

1,926

2,037

2,150

2,177

2,098

2,507

Net Income

million y en

1,319

1,386

1,514

1,465

1,477

1,856

Asset Total

million y en

128,433

138,755

140,614140,534

140,152

156,780

Interest-bearing Debt Total

million y en

70,97673,04674,676

74,606

74,216

83,182

Net Asset

million y en

55,08863,18663,31463,26563,27770,818Return on Assets (ROA)

%

2.0

2.0

2.2

2.2

2.1

2.4

Return on Equity (ROE)

%

4.8

4.4

4.8

4.6

4.7

5.2

FP End Capital Adequacy Ratio

%

42.9

45.5

45.0

45.0

45.1

45.2

LTV

%

55.3

52.6

53.1

53.1

53.0

53.1

times

3.3

3.4

3.5

3.4

3.6

4.3

%

1.61

1.61

1.62

1.61

1.47

1.28

y ears

2.8

2.4

2.1

2.8

2.5

3.0

million y en

3,125

3,300

3,459

3,452

3,424

4,016

%

5.15

5.02

5.19

5.20

5.06

5.34

FFO

million y en

2,055

2,174

2,305

2,251

2,285

2,817

Portfolio

properties

139

143

144

143

145

152

Acquisition Price Total

million y en

121,482

131,462

133,416

132,890135,046

149,862

Book Value Total

million y en

123,545

133,272

134,701

133,564

135,196

150,099

Appraisal Value Total

million y en

109,349

119,471

121,231

121,042

124,512141,011

NAV per Unit

thousand y en

422

393

397

404

418

408

Interest Coverage Ratio
Weighted Average Interest Rate
Long-term Debt Average Remaining Duration
Rent NOINOI Yield (acquisition price base)

ROA=Current Profits/[(Total Asset Value at Start of FP+Total Asset Value at FP End)÷2]x100 *annual basis
Rent NOI=Real Estate Rental Business Revenues- Real Estate Rental Business Income+Current FP Depreciation and Amortization
ROE=Net Income/[(Total Asset Value at FP Start+Total Asset Value at FP End)÷2]x100 *annual basis
NOI Yield (Acq uisition Price Base)=Rent NOI/Total Acq uisition Price x 100 *annual basis
Capital Adequacy Ratio at FP End=Net Asset at FP End/Total Asset at FP End x 100
FFO=Net Income+Current FP Depreciation and Amortization+Investment Corporation Bond Issuance Ammortization-Real Estate Disposition Profit & Loss
LTV=Total Interest-bearing Debt at FP End/Total Asset at FP End x 100
NAV per Unit=[Net Asset Total-(Income Statement Total-Appraisal Value Total)]/Total Number of Investment Units Issued
Interest Coverage Ratio=Net Income Before Interest Depreciation/(Interest Expenses+Investment Coroporation Bond Interest)*annual basis=each measure/operating days x 365 days

33

Interest-bearing Debts (11th Fiscal Period End)FP of Repayment

Amount of Repayment

Lender2 Lenders

12th Fiscal Period(ending Nov. 30, 2012)

13th Fiscal Period(ending May 31, 2013)

14th Fiscal Period(ending Nov. 30, 2013)

15th Fiscal Period(ending May 31, 2014)

16th Fiscal Period(ending Nov. 30, 2014)

17th Fiscal Period(ending May 31, 2015)

18th Fiscal Period(ending Nov. 30, 2015)

19th Fiscal Period(ending May 31, 2016)

20th Fiscal Period(ending Nov. 30, 2016)
21st Fiscal Period(ending May 31, 2017)19th Fiscal Period(ending May 31, 2016)
21st Fiscal Period(ending May 31, 2017)¥12,600 million¥7,190 million¥6,362 million

AmountInterest Rate

Date of Loan

Date of Repayment¥2,200 million

1.81375%

Apr. 27, 2007

Aug. 27, 2012

5 Lenders¥2,600 million

1.49300%

Aug. 27, 2009

Aug. 27, 2012

1 Lender¥1,720 million

1.25071% （注4）Sep. 07, 2010

Aug. 27, 2012

7 Lenders¥5,990 million

0.67000% （注4）

Aug. 26, 2011

Aug. 27, 2012

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

Shot-term Loan

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

￥19,790 million

4 Lenders¥1,600 million

1.51625%

Dec. 03, 2009

Dec. 03, 2012

3 Lenders¥5,500 million

1.83625%

May. 23, 2008

May. 23, 2013

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

3 Lenders¥5,472 million

1.74250%

Sep. 29, 2008

Sep. 29, 2013

1 Lender¥800 million

1.99875%

Sep. 27, 2007

Sep. 30, 2013

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

2 Lenders¥2,000 million

2.14360%

Feb. 27, 2007

Feb. 27, 2014

1 Lender¥2,000 million

2.13625%

Feb. 27, 2007

Feb. 27, 2014

3 Lenders¥1,700 million

0.90115% （注4）

Aug. 26, 2011

Feb. 27, 2014

6 Lenders¥3,500 million

0.90115% （注4）Sep. 30, 2011

Feb. 27, 2014

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

3 Lenders¥3,400 million

0.94700%

Sep. 05, 2011

Sep. 05, 2014

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

1 Lender¥1,000 million

1.79200%

Feb. 26, 2010

Feb. 26, 2015

1 Lender¥1,300 million

2.23500%

May. 15, 2007

Feb. 27, 2015

5 Lenders¥5,400 million

0.96365%

Feb. 27, 2012

Feb. 27, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

5 Lenders¥9,700 million

1.00900%

Feb. 27, 2012

Aug. 27, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

1 Lender¥4,700 million

1.00000%

Dec. 26, 2011

Dec. 26, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

2 Lenders¥9,400 million

1.11700%

Dec. 26, 2011

Jun. 26, 2016

1 Lender¥1,080 million

2.10000%

Aug. 27, 2009

Aug. 27, 2016

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

¥1,350 million

1 Lender¥1,350 million

2.03000%

Feb. 26, 2010

Feb. 26, 2017

¥73,182 million

19 Lenders

－

－

－

¥5,000 million

1.21000%

Feb. 25, 2011

Feb. 25, 2016

¥5,000 million

1.03000%

Feb. 24, 2012

Feb. 24, 2017

－

－

－

¥9,290 million¥3,490 million¥7,790 million¥9,790 million¥4,790 million¥10,530 million¥5,000 million¥5,000 million¥83,182 million

Category

Investment
Corporation Bond
Investment
Corporation Bond

－

－

－

Long-term Loan
￥53,392 million(Note 1) The interest rate stated regarding this loan takes into consideration the Interest Rate Swap transaction.
(Note 2) The amount of ￥40 million to be repayed on February 27, 2010, the first repayment date, and every August 27 and February 27 thereafter, until the last repayment of ￥1,080 million on August 27, 2016.
(Note 3) The amount of ￥50 million to be repayed on August 26, 2010, the first repayment date, and every February 26 and August 26 thereafter, until the last repayment of ￥1,350 million on February 26, 2017.
(Note 4) Regarding the Floating Rate, the interest rate as of the end of the 11th Fiscal Period is stated.

34

Fund Profile

Structure

History
July 28, 2006

Asset Custodian

General Administration(Financial Agent)

The FundGeneral Administration

Financial Agent
Agreement

Administration ofUnitholders Register
Management ofSpecial Accounts
Mitsubishi UFJ
Trust and Banking Corporation

Theof
The Bank
Bank ofTokyo-Mitsubishi UFJ, Ltd.

Notification of incorporation by the founder (Nomura Real
Estate Asset Management Co., Ltd.) under Article 69 of theInvestment Trust Law.

Tokyo-Mitsubishi UFJ, Ltd.

Asset Custody
Agreement

Sumitomo Mitsui
Banking Corporation

Administration
Agreement, etc.

General Administration(Accounting, etc.)

August 3, 2006
Registration of incorporation under Article 166 of theInvestment Trust Law. Incorporation of the Nomura Real
Estate Residential Fund, Inc.

Nomura Real Estate Residential Fund, Inc.
Accounting Service
Agreement

August 4, 2006
Applied for registration under Article 188 of the Investment
Trust Law.

Unitholders Meeting

Heiseikaikeisha Tax
Board of Directors Meeting
Financial Institutions, etc.

August 24, 2006
Registration approved by the Prime Minister of Japan under
Article 187 of the Investment Trust Law (Registration number
56, filed with the Director of the Kanto Local Finance Bureau).

AuditorErnst & Young ShinNihon LLC

Repaymentof Principal& Interest

Debt
Finance
Debt
Investment
Residential Properties(Real Estate Related Assets)
Property
Management
Property Management
Companies

Select the best property
management companies
for each property

CapitalInvestment

Asset

Trade

February 14, 2007
Listing on the Tokyo Stock Exchange.

Unitholders

EquityRent, etc.

Unitholders

Distribution
Property Management
Agreement

Instructions for
Rent &
Management
Rental Strategies,
Plans for
Repairs, etc.

Asset Management
Services Agreement
Information & ResearchService Providers

Asset Management Company
Property
Information

Nomura Real Estate
Development Co., Ltd.
Nomura Real Estate
Urban Net Co., Ltd.

35

Asset Management Company Overview
Structure
General Meetingof Shareholders（ as of July 18, 2012 ）Board of Directors

Board of S tatutory Auditors

President & CEO

Statutory Auditors
Investment Committee

Compliance Committee
NPR Valuation Committee
Risk Management Committee

Client Relations& Marketing

Fund Management

Chief Investment Officer
NOF

Fund
Management

Chief Investment Officer
NRF
Chief Investment Officer
NPR

ClientRelations &Marketing

Project Screening Committee

Investment Management

Aquisitions

Asset
Management

Finance & Accounting

Finance

Accounting

Corporate
Planning

Legal &
ComplianceInternal
Audit

Name

Nomura Real Estate Asset Management Co., Ltd.

Location

8-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo160-0023, Japan

Registrations,
License, etc.

Chief Investment Officer
Private Funds III

Financial instruments business operator registration:
Commissioner of the Kanto Local Finance Bureau (Financial Instruments) No. 374
Licensed for discretionary proxy in realty trading: Minister of Land, Infrastructure and Transport Permit No.18
Licensed for real estate trading: Governor of Tokyo (2) No. 81679
Money lender registration: Governor of Tokyo (1) No.31401

Memberships

Chief Investment Officer
Private Funds IV

the Investment Trusts Association, Japan; the Japan Securities Investment Advisers Association,
the Association for Real Estate Securitization, etc.

Contact Information

Fund Management

Chief Investment Officer
Private Funds I
Chief Investment Officer
Private Funds II

03-3365-7729

nrf3240@nomura-re.co.jp

36This document has been prepared for the purpose of provision of information only, and should not be construed
as an offer, solicitation or commercial conduct of any nature associated with any specific products. Investors
wishing to purchase the investment units of Nomura Real Estate Residential Fund, Inc. should contact their own
securities brokers or dealers. A fee may be charged by your financial instruments business operator in relation
to the sale or purchase of investment units.
For management fees that the Fund pays to Nomura Real Estate Asset Management Co., Ltd., please refer tothe terms and conditions of the Fund, asset management reports, etc.
The forward-looking statements with respect to the future financial results contained in this document are basedon the current facts about the investment policy of the Fund, applicable laws and regulations, the market
environment, business practice, etc., as of the preparation date of this document and do not reflect or consider
any changes in the circumstances after the preparation date. These forward-looking statements inherently
reflect uncertainty about known risks as well as unknown risks and other factors and may deviate from theactual operating and management results, financial conditions, etc., of the Fund.
Investment in real estate investment securities may result in a loss due to a decline in the transaction pricecaused by, for example, changes in the price or the revenue-generating capability of the underlying properties
or deterioration of the financial conditions of the issuer.
Although the information contained in this document is intended to be complete and thorough, there is no
assurance of precision and safety of the same. Please note that the contents of this document is subject tochange or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole of the information
contained in this document without express prior written consent.